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Five Reasons Why Health Insurers Should Lower Their Premiums | Health Care for America Now’s Ethan Rome offers these: 1) Insurance company profits have gone too far, 2) Premiums are going up while medical spending is going down, 3) CEOs Spend Billions on Dividends and Stock Buybacks to Boost Share Prices and Enrich Themselves, 4) Insurance companies hoard cash in the name of “solvency,” 5) While insurance companies are awash in cash, families and businesses are barely getting by.

Block Grants Would Only Worsen The Medicaid Access Problem

Sen. Richard Burr (R-NC) relied on a recent New England Journal of Medicine study — which found that children in Medicaid had a harder time accessing care than those with private insurance — to advocate for substantial reforms of the public health care infrastructure. “Now, the whole debate that we’re having, does Medicare, does Medicaid as currently constructed work?,” Burr asked during a hearing at the Senate Finance Committee today. “It can’t be something that’s working because all of the information is telling us that it’s not,” he said.

Republicans are proposing to transforming Medicaid into a block grant program and providing states with less federal funds and greater flexibility to cut their rolls and institute other benefit changes. Critics maintain that reforming the program by cutting care would only worsen the access problem. It’s a point former CMS head Bruce Vladeck made in responding to Burr:

VLADECK: Absolutely, Medicaid patients have great difficulty in access to care in some communities more than in others and one can only imagine what would happen to those problems in a block grant situation. That’s why CMS has finally belatedly issued regulations to begin to figure out how to define or enforce the access provisions in the statute.

Watch it:

Massachusetts Gov. Deval Patrick (D) — another witness at the hearing — also argued that his state could not maintain its Medicaid program under the kind of block grant structure Republicans are proposing. “There is about a $23 billion cost to us, in cost shifting, over 10 years. A state with a strong balance sheet like ours cannot absorb that and provide the same level of benefits. So you make a decision, you cut benefits or you cut people,” he said. Watch that exchange:

Justice

SCOTUS Dumps On States Rights To Give Legal Immunity To Big Pharma

Earlier today, a 5-4 Supreme Court reached the somewhat bizarre conclusion that generic drug manufacturers are immune from state lawsuits claiming that they failed to warn their consumers of potential risks, but brand name drug makers are not. The five conservatives concluded that a federal law requiring generic drug makers to use the same FDA-approved warning label as their brand name counterparts preempts any state laws requiring stronger labels, while the four more progressive justices believed the drug makers must first ask the FDA to consider ordering a new label before they can invoke lawsuit immunity.

The heart of this case is a legal doctrine known as “preemption,” which says that federal law trumps state law when the two conflict. For decades, the Supreme Court applied this doctrine very sparingly. Invalidating a state law is, after all, a direct assault on a state’s right to govern itself, and so most state laws come to the courts with a presumption that they should not be preempted.

Given the right’s apparent love affair with states rights, one would expect conservative justices to be especially cautious about preempting state laws. As it turns out, however, their regard for states rights ends the minute corporate America starts asking them to invalidate state laws. With the occasional exception of Justice Clarence Thomas, the Court’s right flank could hardly be more aggressive in wielding preemption to knock out state laws.

Today’s opinion (which Thomas wrote), takes these justices’ fair-weather federalism to an entirely new level. Despite the longstanding presumption against preemption, four of the Court’s five conservatives joined a plurality opinion claiming for that presumption to be reversed outright:

Moreover, the text of the Clause—that federal law shall be supreme, “any Thing in the Constitution or Laws of any State to the Contrary notwithstanding”—plainly contemplates conflict pre-emption by describing federal law as effectively repealing contrary state law. The phrase “any[state law] to the Contrary notwithstanding” is a non obstante provision. Eighteenth century legislatures used non obstante provisions to specify the degree to which a new statute was meant to repeal older, potentially conflicting statutes in the same field. A non obstante provision “in a new statute acknowledged that the statute might contradict prior law and instructed courts not to apply the general presumption against implied repeals.”

Fortunately, Justice Anthony Kennedy recognized this as a drastic departure from existing law, so he joined the rest of the opinion without providing the fifth vote to create a presumption against states being able to enact consumer protections that go beyond federal minimums. Nevertheless, his four fellow conservatives sent a very clear message: they care about states rights, except when they care about something else.

 

Huntsman Says Romney Has ‘Little Credibility’ On Health Care, Even Though Romneycare Has Worked

ThinkProgress filed this report from a campaign event in Columbia, South Carolina

Former Utah Gov. Jon Huntsman (R) joined the list of candidates criticizing former Massachusetts Gov. Mitt Romney’s (R) health care plan Wednesday, using an appearance on Good Morning America and a campaign stop in South Carolina to say Romney lacked credibility in the health care debate.

Romneycare, which Huntsman and other Republicans don’t count as a “free market” solution, has plenty of credibility in Massachusetts. Recent polling shows that 63 percent of Massachusetts residents view Romneycare favorably, and the law has been successful on multiple fronts, most notably reducing the state’s uninsured rate to just 1.9 percent. Comparatively, in Utah, 14 percent of the population remains uninsured despite Huntsman’s so-called “free market” reforms.

Yesterday, Huntsman chose to ignore those facts when he argued that Romney had no credibility on the issue:

HUNTSMAN: The question was, when someone who passed and signed that particular law is talking about free market health care, do they have credibility? Otherwise, governors can do whatever they want to do, whatever the aspirations of the people in their state dictate, they can move in that direction. I think the answer was, he would have little credibility talking about market-based health care plans having signed onto that.

Watch it:

Huntsman, who once flirted with the idea of a mandate himself, is correct that Romney lacks credibility on health care. But it’s because Romney has chosen to change his position and ignore the success of the law he signed, not because he signed a law that isn’t working.

Deval Patrick: GOP’s Pleas For Greater Medicaid Flexibility Are ‘A Canard’

The usually soft-spoken Massachusetts Gov. Deval Patrick (D) took a shot at Republican governors this afternoon, describing the GOP’s claim that states should have greater flexibility to manage their Medicaid programs as “a canard.” Patrick made the comments while testifying before the Senate Finance committee:

PATRICK: I think that the question of flexibility strikes me sometimes, frankly, when I hear some of my colleagues talk about it, as bit of a canard because there is a tremendous amount of flexibility we have been offered and we have utilized under the Obama administration and the Bush administration in our own health care reform.

Watch it:

Almost all Republican governors have sought greater flexibility from the federal government, arguing that local officials are best positioned to develop solutions to escalating health care costs. Republican governors have also endorsed House GOP’s block grant proposal. Under that plan, states would receive a pre-determined block grants that would not keep up with health are costs, and would have greater flexibility to make drastic benefit cuts to the program.

Patrick is suggesting that the federal government already allows states to make substantial changes that help save state dollars without sacrificing benefits. States can implement delivery system reforms, set payment strategies without applying for a federal waiver, eliminate optional services, add or increase cost sharing for some services and do a better job of managing and coordinating chronic care. In fact, under the Affordable Care Act, states can even apply for federal funds to better coordinate services for people with chronic conditions and receive federal support to design new models for serving the very expensive dual eligible population.

NEWS FLASH

Expert: McKinsey Study Used Push Polling | Survey expert Floyd Fowler likened the questions in the McKinsey health care survey of how health care reform will affect employer provided insurance to a push poll. Respondents were primed to answer questions with information encouraging them to say they would drop employer based health care coverage. –Sean Savett

Meet The Only Republican Governor Defending Medicaid

Gov. Rick Snyder (R-MI)

Inside Health Policy’s Amy Lotven points out that Michigan Gov. Rick Snyder (R) is the only Republican governor to opt out of a GOP governors’ letter asking the federal government for greater state “flexibility” to make reductions to the Medicaid program and calling for the repeal of the Affordable Care Act. Instead, Snyder has sent off his own letter to Energy and Commerce Chair Fred Upton (R-MI) in which he argues that program efficiencies and grants from the federal government have allowed the state “to spend less general revenue on the program than it did a decade ago, even as enrollment has doubled.” These innovations — including a greater investment in managed care and a grant from the federal government that focuses on dual eligibles — have helped the state maintain its Medicaid services.

Snyde has also instructed the state’s Department of Community Health to implement the measure:

In a separate letter to Upton, Snyder said the state had been able to balance its budget without cutting eligibility, optional services or provider payments. He also referenced the September message on health and wellness.

Since he took office, Snyder has sought to avoid comparisons with other new GOP governors, particularly those in Wisconsin and Ohio who quickly sought to enact controversial limits on public employee collective bargaining rights.

When thousands of protesters were rallying in the Capitol in Madison in February, Snyder pointedly said Michigan “was not” Wisconsin.

Snyder has not called for repeal of the federal health care law and his Department of Community Health is proceeding with its implementation, which includes the establishment of a state-level insurance exchange that would give consumers personal insurance market greater choice and access to coverage.

Implementation of the ACA will actually help Snyder strengthen the Medicaid program. The law provides states with a lot of extra cash, insures more residents and — consequently — allows states to “reduce payments they make to support uncompensated care costs.” The federal government picks up the entire tab of Medicaid expansion until 2016. The government will pay for 95 percent of the expansion in 2017, 94 percent in 2018, and 93 percent in 2019. Beginning in 2020, the federal government will fund 90 percent of the expansion. Significantly, the law will also allow an enhanced match to the 11 states that already cover childless adults below 133 percent of the federal poverty level (the 11 states will begin receiving higher federal matching funds for this population until all states receive 93 percent federal matching rate by 2019). The increases in state spending are very small compared to “increases in coverage and federal revenues and relative to what states would have spent if reform had not been enacted.”

So Snyder is the only Republican governor who is making sense on the Medicaid point. The mainstream GOP line is nonsensical: they’re arguing that they don’t have enough money to sustain their existing programs on one hand, but reject extra ACA dollars on the other. That kind of approach only positions them for making drastic cuts that would impact benefits and enrollment. But then again, they were never interested in public safety net programs in the first place.

NEWS FLASH

New Jersey Court Considers If Individuals Not Yet Harmed By Health Reform Can Challenge It | A federal appeals court in New Jersey heard arguments yesterday in a lawsuit challenging the constitutionality of the Affordable Care Act. The hearing “focused primarily on whether plaintiffs need to demonstrate they are suffering economic harm now or will when the part of the law mandating that everyone have health coverage takes effect.” The deputy assistant attorney general representing the government “conceded that plaintiffs may have an easier time being granted standing to sue as the time approaches for the law to be implemented.”

The Morning CheckUp: June 23, 2011

Welcome to The Morning CheckUp, ThinkProgress Health’s 7:00 AM round-up of the latest in health policy and politics. Here is what we’re reading, what are you?

Gingrey says seniors will ‘die’ under the IPAB: “But under this IPAB we described that the Democrats put in Obamacare, where a bunch of bureaucrats decide whether you get care, such as continuing on dialysis or cancer chemotherapy, I guarantee you when you withdraw that the patient is going to die,” Rep. Phil Gingrey (R-GA) said. “It’s rationing.” [Politico]

Health costs 10 percent of GDP by 2035: Total federal healthcare spending is expected to rise from 5.6% of gross domestic product in 2011 to as much as 10% of the economy by 2035, the CBO said in its latest estimates. [Modern Healthcare]

Noneconomic damage caps in Oklahoma: “Lawmakers put a cap of $350,000 on the amount of money that plaintiffs can recoup for so-called “non-economic damages,” such as the pain and suffering caused by medical malpractice, faulty products or other forms of professional negligence. … At least 18 states have passed legislation in 2011 changing the rules of the civil justice system to favor businesses.” [Stateline]

Massachusetts taking in less from mandate penalty: “Massachusetts has collected $65 million in fines since the individual mandate, the centerpiece of the state’s 2006 health reform law, has been in place.” As fines rose from $219 in 2007 to $1212 this year and the insurance rate increased, money collected in fines dropped. [WBUR]

Louisiana passes abortion restrictions: “The new requirements would mandate that abortion clinics post signs telling pregnant women that they cannot be coerced into abortion, that fathers are liable for child support and that adoptive parents may pay for prenatal care and birth expenses.” [Stamford Advocate]

NH lawmakers reinstate parental notification: “Republican lawmakers flexed their conservative might Wednesday, overrode Democratic Gov. John Lynch’s objections and reinstated a requirement for pregnant girls seeking abortions to tell their parents or a judge first.” The measure does not include an exception for a”victims of rape, incest and abuse.” [Boston Globe]

Global budgeting not reducing health costs: “Early results show that putting doctors and hospitals on a budget — a payment method promoted as a way to curb health costs — has not saved money in Massachusetts.” [Boston Globe]

New consumer rights regs to be released: “The Obama administration says most Americans will soon have the right to appeal to a third party referee when their health insurer denies a claim for a medical service. The rules released Wednesday carry out provisions of President Barack Obama’s health care law.” [AP]

Colorado Medicaid won’t cover circumcisions: “Colorado will join 17 other states in dropping coverage for routine circumcisions under Medicaid,” saving the state’s general fund an estimated $186,500 annually. [Health Policy Solutions]

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